Koos Jansen reports that 70 tonnes of gold was withdrawn from the Shanghai Gold Exchange vaults last week — the third highest amount ever. Withdrawals were only stronger in January 2014 for the Chinese Lunar year, and April 2014 when the price dropped like a stone. The Chinese tend to buy when the price falls, but last week they were buying strongly even though the price was rising sharply.

While almost every other commodity is falling, silver and gold are having their best start in almost 30 years.

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There’s an economic winter coming. Economies go around in seasons just like everything else.

Fiat currency systems hit a reset at regular intervals and we’re overdue. We’ve had an artificial summer of borrowing and money printing, and now there’s more global debt than any time in recorded history . When a reset happens there’s always a time of tension and then a revaluing of currencies. There’s sometimes war and rumours of war. There are currency wars which we’re seeing now. Many lose everything but still there are a few who gain in the process. Or at least are not wiped out.

During economic winter, gold keeps its value.

The US dollar is diluted via Quantitative Easing and now the European Union is doing the same. There’s a tug-o-war between inflation and deflation. There’s a global slow down and depression — there’s tension.

The US dollar is looked at as the safe haven currency right now. It’s important to follow what people believe is true, while at the same time looking at facts. Things are tense globally. In those times we’re not told what is really going on or what is going to happen next.

The Swiss central bank assured everyone they were staying pegged to the euro. Then they shocked the world by depegging without notice. Many lost large amounts of money.

Oil prices suddenly dropped off a cliff along with the Russian ruble. Many will lose their businesses and investments. Many have lost their jobs already.

Europeans and Russians with gold were able to hold their value.

As George R. R. Martin says in A Game of Thrones, “Winter is coming.”

Some people are very good at day trading and currency trading. Most of us are not.

Look at long term cycles and short term news. When the US dollar rises gold usually falls, and in weirder times they both rise against everything else. These are weird times.

Or more precisely, gold stays the same while everything else is freaking out, and fear drives everything into the US dollar for liquidity with perceived safety. Liquidity appeals to people because they can quickly use it to buy something without have to sell something else first. Gold is not as liquid as cash, but keeps its value in a crisis while currencies lose it in inflation and gain it in deflation. Have both.

We can’t be sure how long the US will be seen as a safe haven currency. For those of us who are not short term traders it’s good to look at longer term balance instead of a potential short term quick gain.

Stock up on hot chocolate while we wait to see if it will be a blinding-snowstorm-winter or a freezing-rain-winter. Get some proverbial mittens. Keep 20% of savings in physical gold and silver in case inflation (or hyperinflation) wins the tug-o-war. Keep the rest in cash in case deflation wins. That’s the advice of Jim Rickards, bestselling author of Currency Wars and The Death of Money. Build up until you have 1 oz. of gold and $8,000 cash. That’s the time to get more specific advice on how to invest the cash.

Davinci’s Vitruvian Man is the Golden Ratio

Building wealth is for everyone. Everyone. Even one ounce of silver is your personal wealth, your portfolio, and a place to start.

Artists can see ratios and fractals, and can easily look into the future at “what ifs”.

See yourself as balanced in an unbalanced world. After the turmoil it will all settle down and we’ll have an economic spring. Have that as a plan. Hold a little physical silver and gold and a little cash, and even though there’s the last rays of sun — get out the mitts.
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